National Hockey League

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1 Sports Facility Reports, Volume 8, Appendix 4 National Hockey League Team: Anaheim Ducks Principal Owner: Anaheim Arena Management, LLC; headed by Henry and Susan Samueli Year Established: 1992 Most Recent Purchase Price ($/Mil): $75 (2005) Current Value ($/Mil): $157 Percent Change From Last Year (2 yr. value change due to strike): +45% Arena: Honda Center Date Built: 1993 Facility Cost (millions): $120 Percentage of Arena Publicly Financed: 100% Facility Financing: Publicly Funded, Ogden Entertainment is assuming the debt for the city issued bonds. UPDATE: The team changed its name from the Mighty Ducks of Anaheim to the Anaheim Ducks prior to the season. The new owners changed the logo, colors, and uniform; however, there has not been an announced mascot change. The Anaheim Ducks and the Los Angeles Kings will open the season in a newly refurbished arena in downtown London on Sept as the NHL attempts to expand interest in the game beyond North American. NAMING RIGHTS: Perrier Group of America's Arrowhead Mountain Spring Water was paying $19.5 M over 13 years for the naming rights that expired in In October 2006, the Arena became the Honda Center, with Honda agreeing to pay $60 M over 15 years for a naming rights deal that will expire in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 1

2 Team: Atlanta Thrashers Principal Owner: Atlanta Spirit, LLC Year Established: 1997 Most Recent Purchase Price ($/Mil): $250 (2004) included Atlanta Hawks, Atlanta Thrashers, and operating rights in Philips Arena Current Value ($/Mil): $128 Percent Change From Last Year: +21% Arena: Philips Arena Date Built: 1999 Facility Cost (millions): $ Percentage of Arena Publicly Financed: 91% Facility Financing: The facility was financed through $149.5 M in government-backed bonds to be paid back at $12.5 M a year for 30 years. A 3% car rental tax was created to pay for $62 M of the public infrastructure costs and Time Warner contributed $20 M for the remaining infrastructure costs. UPDATE: In June 2006, a circuit court ruled that Atlanta Spirit co-owner Steve Belkin was entitled to buy out his partners and take over operation of the Hawks, Thrashers, and Philips Arena. The judge held that the other owners had breached an earlier agreement to buy out Belkin. Belkin had the ability to take over the teams as early as July 13, 2006; however, the Spirit co-owners filed a motion to stay the order to sell the shares until after the co-owners have a chance to appeal the decision. As of June 2007, the parties are still awaiting a decision from the Maryland Court of Special Appeals on the appeal of last year's circuit court ruling. NAMING RIGHTS: Philips Electronics is paying $168 M over 20 years for the naming rights that expire in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 2

3 Team: Boston Bruins Principal Owner: Jeremy Jacobs Year Established: 1924 Most Recent Purchase Price ($/Mil): $10 (1975) Current Value ($/Mil): $235 Percent Change From Last Year: 0% Arena: TD Banknorth Garden Date Built: 1995 Facility Cost (millions): $160 Percentage of Arena Publicly Financed: 0% Facility Financing: Privately financed. UPDATE: At the NHL Board of Governors meeting in June 2007, Bruins owner Jeremy Jacobs was elected Chairman of the Board, replacing Calgary's Harley Hotchkiss, who stepped down after 12 years in the position. For the season, the Garden revamped its premium seating to accommodate Boston's growing number of young professionals. The Boardroom, a private club area, which appeals to firms and companies, accommodates the growing interest in luxury at sporting events. The Boardroom was created by knocking out luxury suites and includes its own personal chef. In addition, The Premium Sports Deck was created to appeal to young professionals. It has a lower cost and commitment than the Boardroom, but provides more luxury than the former sports bar, including a new menu. The Garden's changes are the most extensive since it opened in NAMING RIGHTS: TD Banknorth Inc. is paying $120 M over 20 years for the naming rights that expire Team: Buffalo Sabres Principal Owner: Thomas Golisano Year Established: 1970 Most Recent Purchase Price ($/Mil): $80 (2003) Current Value ($/Mil): $149 Percent Change From Last Year: +45% Arena: HSBC Arena Date Built: 1996 Copyright 2007, National Sports Law Institute of Marquette University Law School Page 3

4 Facility Cost (millions): $127.5 Percentage of Arena Publicly Financed: 44% Facility Financing: The Arena was financed through a state loan (20%); County bonds backed by ticket surcharge (16%), City bonds (8%) and private bank loans (56%). UPDATE: The Sabres unveiled their new logo in late 2006, but many fans and experts were quick to criticize the new design and colors. Early opinion did not seem to matter, though, since the Buffalo Sabres jersey was the most popular jersey on NHL.com this past season. NAMING RIGHTS: Marine Midland Bank originally bought the naming rights to the arena in 1995 for $15 M over 20 years. But when the bank was bought out by HSBC Bank in 1999, the bank paid $9 M to change the name to HSBC Arena and extend the original agreement to 30 years. Currently HSBC Bank pays approximately $800,000 a year for a contract that will expire in Team: Calgary Flames Principal Owners: Calgary Flames, LP; comprised of Harley Hotchkiss, Daryl Seaman, Byron J. Seaman, Ronald V. Joyce and N. Murray Edwards Year Established: 1972 in Atlanta, moved to Calgary in 1980 Most Recent Purchase Price ($/Mil): $16 (1980) Current Value ($/Mil): $135 Percent Change From Last Year: +17% Arena: Pengrowth Saddledome Date Built: 1983 Facility Cost (millions): $176 Canadian; $166 American Percentage of Arena Publicly Financed: 100% Facility Financing: The City of Calgary and the province of Alberta each contributed US $31.5 million, the federal government contributed US $29.7 million and the 1988 Olympic organizing committee provided US $5 million. UPDATE: Most Calgarians want either a new Saddledome or renovations made to the existing one. In a recent poll, one-quarter of Calgarians approve of a new Saddledome while one-third would like to see improvements made to the present arena. The Saddledome last received a facelift in 1995 costing $32.2 million. NAMING RIGHTS: Pengrowth Management is paying $1 M per year for the naming rights that expire in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 4

5 Team: Carolina Hurricanes Principal Owner: Peter Karmanos Jr. Year Established: Joined the league as the Hartford Whalers in 1979, moved to Raleigh, North Carolina as the Hurricanes in Most Recent Purchase Price ($/Mil): $47.5 (1994) Current Value ($/Mil): $144 Percent Change From Last Year: +17% Arena: RBC Center Date Built: 1999 Facility Cost (millions): $158 Percentage of Arena Publicly Financed: 87% Facility Financing: The arena was financed by an $18 M contribution from NC State, $44 M from Wake County and the City of Raleigh, $22 M from the state, $50 M from the sale of bonds and $20 M from the team. Additionally, the state covered the infrastructure costs. The Hurricanes share the arena with North Carolina State University. UPDATE: The Centennial Authority, the public agency that owns the RBC Center, has drafted plans to keep the RBC Arena where it is until 2034, rather than following the lead of other teams that have moved their arenas downtown. The $60 million plan proposes asking Raleigh and Wake County for $1.5 million more each year for retrofitting renovations, but the plans have not been approved yet. NAMING RIGHTS: RBC Centura Bank is paying $80 M over 20 years for the naming rights that expire in Team: Chicago Blackhawks Principal Owner: Wirtz Corp; headed by William Wirtz Year Established: 1926 Most Recent Purchase Price ($/Mil): $1 (1954) Current Value ($/Mil): $168 Percent Change From Last Year: -6% Arena: United Center Date Built: 1994 Copyright 2007, National Sports Law Institute of Marquette University Law School Page 5

6 Facility Cost (millions): $175 Percentage of Arena Publicly Financed: 7% Facility Financing: A joint venture between the NBA's Bulls and NHL's Blackhawks paid for the facility. The City contributed some of the infrastructure costs. UPDATE: The Blackhawks recently signed a ten year affiliation agreement to bring an AHL franchise to Rockford, Illinois to serve as their farm team. Furthermore, in April 2007, Chicago was selected as the United States bid city for the 2016 Summer Olympic Games. The United Center has the largest crowd capacity of any current NBA arena and will be used as an Olympic facility to host basketball and gymnastics. NAMING RIGHTS: United Airlines is paying $25 M over 20 years for the naming rights that expire in Team: Colorado Avalanche Principal Owner: Stan Kroenke Year Established: Joined in 1979 as the Quebec Nordiques, moved to Colorado in 1995 and changed its name to the Avalanche. Most Recent Purchase Price ($/Mil): $450 in 2000 for the Denver Nuggets, the Pepsi Center and 93% of the Avalanche. Current Value ($/Mil): $219 Percent Change From Last Year: -11% Arena: Pepsi Center Date Built: 1999 Facility Cost (millions): $164.5 Percentage of Arena Publicly Financed: 3% Facility Financing: Financed mostly through private loans with certain tax breaks. The team also received $15 M from Liberty Media, $4.5 M for infrastructure, $2.25 M of construction sales tax rebates and $2.1 M annually in property tax exemptions. UPDATE: The Colorado Avalanche announced it has signed a long-term affiliation agreement with the new American Hockey League franchise in Cleveland, which will begin play in the season. The new Cleveland franchise was previously operated as the Utah Grizzlies in the AHL before Dan Gilbert, owner of the NBA's Cleveland Cavaliers, purchased the Grizzlies AHL franchise rights in May The Avs currently have an affiliation deal with the Albany River Rays (AHL). In addition, future events at the Pepsi Center include the NCAA Copyright 2007, National Sports Law Institute of Marquette University Law School Page 6

7 Men's ice hockey Frozen Four tournament on April 10 and April 12, The center was also used in aerial shots of the 2007 film Blades of Glory starring Will Ferrell. NAMING RIGHTS: Pepsi is paying $68 M over 20 years for the naming rights that expire in Team: Columbus Blue Jackets Principal Owner: Wolfe Enterprises; headed by John H. McConnell Year Established: 2000 Most Recent Purchase Price ($/Mil): $80 (1997) Expansion Fee Current Value ($/Mil): $139 Percent Change From Last Year: 0% Arena: Nationwide Arena Date Built: 2000 Facility Cost (millions): $150 Percentage of Arena Publicly Financed: 0% Facility Financing: Nationwide Insurance contributed 90% of the $150 M costs and Dispatch Printing Co. contributed 10%. UPDATE: The Blue Jackets unveiled new uniforms for the season. The uniform generally looks the same as the old, except a flashy design of the Ohio Flag has replaced the CBJ design as the official logo of the team, and is now in front of the jersey. Also as part of the Reebok sponsored new uniform design, the NHL logo is now on the jersey's neckline. NAMING RIGHTS: Nationwide acquired the naming rights indefinitely as part of a deal to provide 90% of the financing for the arena. Team: Dallas Stars Principal Owner: Thomas O. Hicks Year Established: Joined in 1967 as the Minnesota Northstars, moved to Dallas as the Stars in Most Recent Purchase Price ($/Mil): $84 (1995) Current Value ($/Mil): $248 Percent Change From Last Year: -7% Copyright 2007, National Sports Law Institute of Marquette University Law School Page 7

8 Arena: American Airlines Center Date Built: 2001 Facility Cost (millions): $420 Percentage of Arena Publicly Financed: 30% Facility Financing: The city capped its spending at $125 M. The Mavericks owner, Mark Cuban and Stars owner, Tom Hicks, covered the remaining amount. Team owners spent $295 M in private investment dollars. The funds to repay the public portion of the financing are coming from a 5% car rental tax, 2% hotel tax and a $3.4 M per-year lease agreement with the teams for 30 years. UPDATE: The American Airlines Center is equipped as a state-of-the-art Wi-Fi access venue. The fans in premium-section seats can order food, drinks and security personnel using PDAs. In addition, the Dallas Area Rapid Transit (DART) just opened a station at the American Airlines Center, thus connecting the Center to downtown Dallas. NAMING RIGHTS: American Airlines is paying $195 M over 30 years for the naming rights that expire in In 2003, when American Airlines restructured to prevent filing for bankruptcy, the annual payments were also restructured. Team: Detroit Red Wings Principal Owner: Michael and Marian Illitch Year Established: 1926 Most Recent Purchase Price ($/Mil): $8 (1982) Current Value ($/Mil): $258 Percent Change From Last Year: +4% Arena: Joe Louis Arena Date Built: 1979 Facility Cost (millions): $57 Percentage of Arena Publicly Financed: 100% Facility Financing: Publicly Funded. UPDATE: Plans to renovate JLA or build a new arena have been discussed for the past few years, but no definite plans have been made. The current arena has no luxury boxes or other revenue generating amenities and is considered outdated. NAMING RIGHTS: Named after the legendary Detroit boxer Joe Louis, the Joe Louis Warehouse was given its name because of its open and bleak look in But when Mike and Marian Illitch bought the team in 1982, they did some redecorating and gave the Warehouse a Copyright 2007, National Sports Law Institute of Marquette University Law School Page 8

9 little more style to make it an appealing arena. The Illitches have no intention of selling the naming rights to the arena. Team: Edmonton Oilers Principal Owner: Edmonton Investors Group; headed by Cal Nichols Year Established: 1979 Most Recent Purchase Price ($/Mil): $70 (1998) Current Value ($/Mil): $146 Percent Change From Last Year: 40% Arena: Rexall Place Date Built: 1974 Facility Cost (millions): $68 Canadian; $64.2 American Facility Financing: In 1994 a $14 M Canadian ($13 M American) renovation was completed. UPDATE: Discussion has begun as to whether aging Rexall Place should be renovated or a new arena should take its place. Renovations are projected to cost $220-$250 million and construction would last three to four years. This has led many city officials to favor building a new arena closer to the downtown to revitalize the city and lure more patrons to its restaurants and shops. NAMING RIGHTS: Rexall, a medicine company, signed a 10-year deal in 2003 for an undisclosed amount for both the naming rights and the right to be the team's exclusive health care provider. Terms of the deal were not disclosed but the previous deal was worth $1.2 M in Canadian dollars. Team: Florida Panthers Principal Owner: Sunshine Sports and Entertainment; headed by Alan Cohen Year Established: 1994 Most Recent Purchase Price ($/Mil): $104.7 (2001) Current Value ($/Mil): $142 Percent Change From Last Year: +18% Arena: BankAtlantic Center Date Built: 1998 Facility Cost (millions): $212 Copyright 2007, National Sports Law Institute of Marquette University Law School Page 9

10 Percentage of Arena Publicly Financed: 87% Facility Financing: Broward County contributed $185 M, partially funded by adding a 2% tourism tax. The team covered the remainder of the cost. UPDATE: The BankAtlantic Center opened two clubs for the start of the hockey season. A sports themed club, with Eastern Financial as the title sponsor, encompasses 8,000 square feet, including an out-door patio open to 500 members. The Patron Tequila Platinum Club is an upscale sports bar, which is open to full season seat holders, suite holders, and Private Club members. NAMING RIGHTS: Bank Atlantic is paying $14 M over 10 years for the naming rights that expire in The contract includes an option to extend the agreement for another ten years upon conclusion. Team: Los Angeles Kings Principal Owner: AEG Worldwide; headed by Philip Anschutz Year Established: 1967 Most Recent Purchase Price ($/Mil): $ (1995) Current Value ($/Mil): $205 Percent Change From Last Year: +6% Arena: Staples Center Date Built: 1999 Facility Cost (millions): $375 Percentage of Arena Publicly Financed: 19% Facility Financing: Bank of America underwrote a $305 M loan to finance construction. The city provided $38.5 M in bonds and $20 M in Los Angeles Convention Center reserves. This money will eventually be repaid through arena revenues. An additional $12 M in tax incremental financing was also provided by the city's Community Redevelopment Agency. UPDATE: In September 2005, AEG set in motion a $2.5 billion deal for the construction of LA Live. LA Live is a downtown development project next to the AEG owned Staples Center that combines theaters, nightclubs, shops, an ESPN studio, condominiums and hotels. In June 2007, AEG secured Wachovia Bank as a founding partner but did not disclose the amount the bank will finance. MacFarlane, an urban real estate development investor, will also finance the project offering $400 million. The remainder of the financing will be provided by the city and through Live's condominium sales. AEG believes that this will revitalize the downtown area and is expected to be completed in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 10

11 NAMING RIGHTS: Staples, an office supply company, is paying $100 M over 20 years for the naming rights that expire in Team: Minnesota Wild Principal Owner: Minnesota Hockey Ventures Group, LP; headed by Robert Naegele Jr. Year Established: 2000 Most Recent Purchase Price ($/Mil): $80 (1997) Expansion fee Current Value ($/Mil): $163 Percent Change From Last Year: 0% Arena: Xcel Energy Center Date Built: 2000 Facility Cost (millions): $130 Percentage of Arena Publicly Financed: 73% Facility Financing: The team contributed $35 M, $30 M came from the city through sales tax revenue, and the State of Minnesota provided a $65 M interest-free loan. UPDATE: Even though there have been rumors, Bob Naegele is not in the market to sell his team, but is looking to merge the management of his arena with the Target Center. The Xcel Energy Center has found it hard to compete in the same market as the Minnesota Timberwolves' Target Center. The two arenas often have to compete for concerts and big events, resulting in lower profits for both arenas and leading the Wild to ask the State Legislature to bail them out of their tough financial situation. With the Target Center landing new management, Los Angelesbased AEG, the Xcel Energy Center may face an even worse financial future if it does not find new management soon. NAMING RIGHTS: Xcel Energy is paying $75 M over 25 years for the naming rights that expire in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 11

12 Team: Montreal Canadiens Principal Owner: George Gillett Year Established: 1917 Most Recent Purchase Price ($/Mil): $181.5 Candian (2001); $164 American Current Value ($/Mil): $230 Percent Change From Last Year: +18% Arena: Bell Centre (Le Centre Bell) Date Built: 1996 Facility Cost (millions): $230 Canadian; $208 American Percentage of Arena Publicly Financed: 0% Facility Financing: Full cost assumed by the Molson Co. Ltd. UPDATE: Donald Beauchamp, the Montreal Canadiens' vice-president (communications and community relations), said the team is not for sale. But there are reports that owner George Gillett has been involved in "top secret" negotiations with Dietrich "Didi" Mateschitz, the founder of Red Bull. Mateschitz owns the FC Salzburg soccer club, FC Red Bull (MLS), and is involved in Formula One as the owner of the Red Bull-Renault team. Last year, Mateschitz told a reporter from Le Journal de Montreal he was interested in adding an NHL team to his portfolio. For now, Gillett's intent to sell the team is just a rumor. NAMING RIGHTS: Bell Canada is paying $64 M over 20 years for the naming rights that expire in Team: Nashville Predators Principal Owner: Nashville Predators, LLC; headed by Craig L. Leipold Year Established: 1998 Most Recent Purchase Price ($/Mil): $80 (1997) Expansion fee Current Value ($/Mil): $134 Percent Change From Last Year: +21% Arena: Sommet Center Date Built: 1997 Facility Cost (millions): $144 Percentage of Arena Publicly Financed: 100% Facility Financing: General obligation bonds issued by the City of Nashville. Copyright 2007, National Sports Law Institute of Marquette University Law School Page 12

13 UPDATE: Craig Leipold confirmed in May 2007 that he had signed a letter of intent to sell the franchise to Canadian billionaire, Jim Balsillie for $220 million after losing $70 million in ten years of his ownership. But in July 2007, the Predators owner began negotiations with California businessman William Boots DelBiaggio to purchase the team. DelBiaggio hopes to bring a franchise to Kansas City and has offered $190 million, while Balsillie wants to move the team to Hamilton and has offered up to $238 million as of June Leipold said nothing is final until the league's board of governors approves a deal, which will not be until September NAMING RIGHTS: In May 2007, the Predators signed a long-term naming rights deal with the Franklin-based Sommet Group. Sommet (pronounced So-May) Group is a collection of companies whose services include human resources administration, payroll processing, and insurance and risk management. Details of the deal were not released, but the naming rights deal has raised conjecture that the team may remain in Nashville despite relocation rumors. Team: New Jersey Devils Principal Owner: Jeffrey Vanderbeek Year Established: 1974 as the Kansas City Scouts, moved to East Rutherford and became the New Jersey Devils in 1983 Most Recent Purchase Price ($/Mil): $125 Current Value ($/Mil): $148 Percent Change From Last Year: +19% Arena: Prudential Center Date Built: 2007 Facility Cost (millions): $365 Percentage of Arena Publicly Financed: 66% Facility Financing: $210 M from the city of Newark and the remainder from the team. UPDATE: October 2005 was the groundbreaking ceremony for the Newark Arena, future home of the New Jersey Devils. The project is expected to be completed by October 2007 in time for the center's opening concert featuring Bon Jovi. The project was $365 million and is expected to help start the $1 B revitalization of downtown Newark. The 17,500 seat arena will include stateof-the-art technology and a gourmet restaurant, which will overlook the ice. NAMING RIGHTS: Prudential struck a naming-rights deal with the New Jersey Devils for $105.3 million over the next 20 years, which will expire in Since Prudential has other arenas named after it around the U.S., Newark's Prudential Center has been nicknamed The Rock to distinguish it from the others. Copyright 2007, National Sports Law Institute of Marquette University Law School Page 13

14 Team: New York Islanders Principal Owner: Charles Wang & Sanjay Kumar Year Established: 1972 Most Recent Purchase Price ($/Mil): $190 (2000) Current Value ($/Mil): $140 Percent Change From Last Year: -12% Arena: Nassau Veterans Memorial Coliseum Date Built: 1972 Facility Cost (millions): $31.3 Percentage of Arena Publicly Financed: 100% Facility Financing: Funded through tax-exempt bond issue. UPDATE: Charles Wang, majority owner of the Islanders, has signed a Memorandum of Understanding with Nassau County officials to develop the 77-acre property around the Nassau Veterans Memorial Coliseum in Uniondale. The $1.5 B development, referred to as the Lighthouse, will include $200 M in renovations to the arena, and a new 50,000-square feet athletic complex, which will include a minor-league baseball field. The new development will also include a convention center, shopping, a five-star hotel, luxury condominiums and a HUB bus/trolley system. The season lockout dramatically slowed down the project, though. Officials are now discussing plans of building a new arena in neighboring Suffolk County or Brooklyn. With either of these changes, the team name would remain the same since both are part of Long Island geographically. NAMING RIGHTS: The arena was built on a former Army/Air Force base, and is dedicated to those who have died for this country. Because of its memorial status there are no naming rights deals being considered. Team: New York Rangers Principal Owner: Cablevision Systems Corp (60%), and Fox Entertainment Group (40%) Year Established: 1926 Most Recent Purchase Price ($/Mil): Fox acquired 40% of the Knicks, the New York Rangers, Madison Square Garden and MSG Cable Network in 1997 for $850. Current Value ($/Mil): $306 Percent Change From Last Year: +9% Copyright 2007, National Sports Law Institute of Marquette University Law School Page 14

15 Arena: Madison Square Garden Date Built: 1968 Facility Cost (millions): $43 Percentage of Arena Publicly Financed: 100% Facility Financing: $200 M in renovations were completed in 1991 UPDATE: The Empire State Development Corp. is negotiating with private developers on a plan that probably will include a new Madison Square Garden, to be built in the annex of the Farley Post Office on 8th Avenue. This will create more than 5 million square feet of new office space on the spot where the Garden stands now. These changes are part of a larger makeover for the area's subway system in which ESDC will build new stations in both the post office and nearby Penn Station. ESDC hopes the project will be completed by The proposed Madison Square Garden V would cost $750 M. NAMING RIGHTS: Madison Square Garden's history is probably the most significant reason the owners have stated that they would never sell the naming rights to the arena. The history began when Madison Square Garden I opened in The current Madison Square Garden, Madison Square Garden IV, opened in Team: Ottawa Senators Principal Owner: Eugene Melnyk Year Established: The franchise joined the NHL in 1917 and lasted until The new Senators joined in Most Recent Purchase Price ($/Mil): $120 Canadian; $113.3 American in 2003 for the Senators and the Corel Centre Current Value ($/Mil): $159 Percent Change From Last Year: +27% Arena: Scotiabank Place Date Built:1996 Facility Cost (millions): $200 Canadian; $181 American Percentage of Arena Publicly Financed: 21% Facility Financing: A $26 M provincial government loan and a $6 M Canadian federal government grant cover 21%. The rest is through private bank consortium loans, subordinated loans and suite sales and fees. NAMING RIGHTS: Scotiabank is paying $20 M Canadian over 15 years for a naming rights deal that expires in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 15

16 Team: Philadelphia Flyers Principal Owner: Comcast-Spectacor Year Established: 1967 Most Recent Purchase Price ($/Mil): Acquired as part of a $250 M merger between Comcast and Spectacor in Current Value ($/Mil): $246 Percent Change From Last Year: -7% Arena: Wachovia Center Date Built: 1996 Facility Cost (millions): $210 Percentage of Arena Publicly Financed: 11% Facility Financing: $140 M was financed through a private bank. Spectacor contributed $45 M and $30 M will come from the naming rights revenue. The state provided $17 M and the City of Philadelphia provided an $8.5 M loan for infrastructure improvements. Additionally, $10 M came from state capital redevelopment assistance funding for general site improvements. UPDATE: In October 2006, new visual effects were completed in the Wachovia Center for the Center's 10th year anniversary, including a center-hung structure with four LED Diamond Vision video boards, eight SMARTVISION LED virtual scoring matrix and two SMARTVISION LED circular "rings." In addition to the center-hung scoreboard, ANC also added an additional 1,000 feet of SMARTVISION 20mm LED ribbon around the second level facade to compliment the company's existing fascia system at the arena. Two outdoor SMARTVISION LED screens were installed to welcome fans on Pattison Avenue as well. NAMING RIGHTS: CoreStates Bank purchased the naming rights for $1.4 M a year until 2023 for the Wachovia Center and the Wachovia Spectrum (the old arena). CoreStates was acquired by First Union, which then merged with Wachovia Bank in 2001, keeping the Wachovia name. In 2003 the Center and Spectrum acquired the new name. Copyright 2007, National Sports Law Institute of Marquette University Law School Page 16

17 Team: Phoenix Coyotes Principal Owner: Los Arcos Sports; including Steve Ellman, Jerry Moyes, and Wayne Gretzky. Year Established: Joined in 1979 as the Winnipeg Jets, moved to Phoenix in 1996, becoming the Coyotes. Most Recent Purchase Price ($/Mil): $125 (2001) Current Value ($/Mil): $143 Percent Change From Last Year: +5% Arena: Jobing.com Arena Date Built: 2003 Facility Cost (millions): $220 Percentage of Arena Publicly Financed: 82% Facility Financing: $150 M came from the city, which will be repaid through property and sales taxes generated by the arena and its adjacent retail complex. The remaining $30 M came from general obligation bonds for public improvements approved by voters in 1999 and was paid with property taxes generated city-wide. The team committed to pay approximately $40 M for cost overruns. UPDATE: In April 2006, an ownership restructuring was announced for the Coyotes, Glendale Arena, and the surrounding area development. Moyes has assumed majority control of the Coyotes, the arena and the lacrosse team, the Arizona Sting. Ellman has assumed majority control over the Westgate City Center, the 6.5 million-square-foot entertainment and retail development of the area surrounding the arena. A 320 room Renaissance Hotel and Conference Center is also planned for Westgate. NAMING RIGHTS: On October 25, 2006, local online company Jobing.com signed a 10-year naming rights deal for $30 million. Team: Pittsburgh Penguins Principal Owner: Lemieux Group, L.P., headed by Mario Lemieux and Ron Burkle Year Established: 1967 Most Recent Purchase Price ($/Mil): $99 (1999) Current Value ($/Mil): $133 Percent Change From Last Year: +31% Arena: Mellon Arena Date Built: 1961 Copyright 2007, National Sports Law Institute of Marquette University Law School Page 17

18 Facility Cost (millions): $22 Percentage of Arena Publicly Financed: 100% Facility Financing: Originally was built for the Civic Light Opera. The city and county combined to pay for the facility. UPDATE: In March 2007, an agreement between the Penguins, the city of Pittsburgh, Allegheny County and the state of Pennsylvania, called for a new arena to be constructed for the NHL's season. The team has announced that the ICON Venue group will oversee the arena's construction and HOK Sport will design the new building. The Penguins lease at Mellon Arena was scheduled to expire on June 30, 2007, but the team extended their lease for two more years as part of its 30-year lease deal. NAMING RIGHTS: Mellon Financial is paying $18 M over 10 years for the naming rights that expire in Mellon Financial Group will have the first chance to buy a naming rights deal for the new arena as part of its original agreement in Team: San Jose Sharks Principal Owner: San Jose Sports and Entertainment Enterprises Year Established: 1991 Most Recent Purchase Price ($/Mil): $147 (2002) Current Value ($/Mil): $145 Percent Change From Last Year: -2% Arena: HP Pavilion at San Jose, aka The Shark Tank Date Built: 1993 Facility Cost (millions): $162.5 Percentage of Arena Publicly Financed: 78% Facility Financing: $132.5 M funded by the City of San Jose; $30 M funded by HP Pavilion Management UPDATE: San Jose Mayor, Chuck Reed endorsed new subsidies for the Sharks to buy better audio and visual equipment for the HP Pavilion. The new equipment, including a scoreboard, a sound system, and a flashing light display to ring the arena's interior, will cost $16.5 million. The city and the team will each pay for half of the costs. NAMING RIGHTS: Hewlett-Packard is paying $47 M over 15 years for the naming rights that expire in HP will add $800,000 per year if San Jose acquires an NBA team. Copyright 2007, National Sports Law Institute of Marquette University Law School Page 18

19 Team: St. Louis Blues Principal Owner: Sports Capital Partners, headed by Dave Checketts Year Established: 1967 Most Recent Purchase Price ($/Mil): $150 (2006) for the Blues and Saavis (now Scottrade) Center Current Value ($/Mil): $150 Percent Change From Last Year: +7% Arena: Scottrade Center Date Built: 1994 Facility Cost (millions): $160 Percentage of Arena Publicly Financed: 15% Facility Financing: The city contributed $34.5 M for site preparation and garages. Twenty corporations provided $30 M in cash and guaranteed $98 M in construction loans. UPDATE: Dave Checketts bought the struggling Blues in June 2006 from Bill Laurie and his wife Nancy (daughter of Wal-Mart founder James Bud Walton). The new owners did not hesitate to raise ticket prices for the season. The Scottrade Center also received an upgrade in October 2006, including two new LED scoreboards, one of which is a ribbon scoreboard that wraps around the entire arena. In addition, overhead lighting has been improved while the Blues' dressing room also received some fresh paint and carpeting. NAMING RIGHTS: Scottrade, an online financial investment company, purchased the naming rights for the arena in September Terms of the agreement were not disclosed. Team: Tampa Bay Lightning Principal Owner: Palace Sports and Entertainment; headed by William Davidson Year Established: 1991 Most Recent Purchase Price ($/Mil): $117 (1999) Current Value ($/Mil): $172 Percent Change From Last Year: +15% Arena: St. Pete Times Forum Date Built: 1996 Facility Cost (millions): $139 Percentage of Arena Publicly Financed: 62% Facility Financing:Construction and infrastructure costs were paid by a combination of team Copyright 2007, National Sports Law Institute of Marquette University Law School Page 19

20 money ($53 M) and public money ($86 M). UPDATE: In Spring 2007, the Florida Senate unveiled a plan to split $100 million three-ways to help fund or renovate arenas for the Orlando Magic (NBA), the Florida Marlins (MLB), and the Tampa Bay Lightening (NHL). Furthermore, the Florida House of Representatives approved a plan that authorizes a $2 million-a-year rebate over 30 years for a new Magic arena and a renovated arena for the Tampa Bay Lightning hockey team. NAMING RIGHTS: The St. Petersburg Times is paying $25.2 M over 12 years for the naming rights that expire in Team: Toronto Maple Leafs Principal Owner: Maple Leafs Sports and Entertainment Year Established: 1917 Most Recent Purchase Price ($/Mil): $90 (1994) Current Value ($/Mil): $332 Percent Change From Last Year: +18% Arena: Air Canada Centre Date Built: 1999 Facility Cost (millions): $265 Canadian; $250 American Percentage of Arena Publicly Financed: 0% Facility Financing: Privately financed. UPDATE: Maple Leaf Sports and Entertainment (MLSP) is planning an estimated $34 million renovation to Air Canada Centre; however, the renovation will not take place until 2009 because they are intended to coincide with the arena's 10-year anniversary. NAMING RIGHTS: Air Canada is paying $40 M Canadian over 20 years for the naming rights that expire in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 20

21 Team: Vancouver Canucks Principal Owner: Orca Bay Sports & Entertainment, Headed by Francesco Aquilini Year Established: 1970 Most Recent Purchase Price ($/Mil): $80.2 for 87% Current Value ($/Mil): $192 Percent Change From Last Year: +30% Arena: General Motors Place Date Built: 1995 Facility Cost (millions): $160 Canadian; $144.5 American Percentage of Arena Publicly Financed: 0% Facility Financing: Privately financed. UPDATE: In 2004, the Aquilini Investment Group, headed by Francesco Aquilini, purchased a 50% share in Orca Bay Sports and Entertainment, the company that owned both the Canucks franchise and GM Place from John McCaw. Aquilini and two business partners, Tom Gaglardi and Ryan Beedie, had been negotiating with Orca Bay for several months without finalizing an agreement. In January 2005, Gaglardi and Beedie filed a lawsuit against Aquilini and Orca Bay alleging that Aquilini and Orca Bay had acted in bad faith in concluding a deal using information obtained from their joint offer. On November 8, 2006, Francesco Aquilini became the sole owner of the team and General Motors Place by purchasing the remaining 50% of the Vancouver Canucks and GM Place from McCaw. In May 2007, Gaglardi and Beedie's civil lawsuit over Aquilini's purchase reached the British Columbia Supreme Court and as of June 2007, the case is still pending. NAMING RIGHTS: General Motors Canada is paying $18.5 M over 20 years for the naming rights that expire in Team: Washington Capitals Principal Owner: Lincoln Holdings, LLC; Headed by Ted Leonsis Year Established: 1974 Most Recent Purchase Price ($/Mil): $85 as part of a $200 deal, that included 36% of Washington Sports and Entertainment, LP. Current Value ($/Mil): $127 Percent Change From Last Year: +10% Copyright 2007, National Sports Law Institute of Marquette University Law School Page 21

22 Arena: Verizon Center Date Built: 1997 Facility Cost (millions): $260 Percentage of Arena Publicly Financed: 23% Facility Financing: Private loans financed the building. The District of Columbia provided $60 M in infrastructure costs. UPDATE: In April 2007, the D.C. Council acquiesced to Wizards owner, Abe Pollin's request and gave preliminary approval to the sale of $50 million in bonds to fund improvements to the Verizon Center. The city will increase taxes on tickets and merchandise at the downtown arena from 5.75 percent to 10 percent, with the additional tax revenue used to pay off the bonds. Pollin said he could not fund the improvements himself since he is still $110 million in debt from the arena's construction. Furthermore, the Washington Capitals (NHL) have seen a 16 percent increase in ticket revenue over the last year as new marketing and promotion efforts have triggered a bump in sales of single-game tickets. The team said the average number of single game tickets sold a game has risen by 44 percent since the season began in October and that walk-up sales (tickets purchased in the three hours before a game) have risen 41 percent. Capitals officials also reported a modest increase in sales of VIP seats located in the first two rows of Verizon Center's lower bowl. NAMING RIGHTS: Verizon is paying $44 M over 15 years for the naming rights that expire in Copyright 2007, National Sports Law Institute of Marquette University Law School Page 22